Approval Speculation

The Securities and Exchange Commission (SEC) has approved spot Ethereum ETFs, another step toward crypto sector acceptability. How is this clearance different from Bitcoin‘s January one?

The SEC approved a spot Ethereum ETF on May 23, 2023. This allowed some investing firms to offer a Bitcoin ETF. VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise need SEC approval for their registration statements. However, these firms should soon sell Ethereum ETFs.

Intriguingly, the disclosure comes as the government decides whether to name the digital asset a security. The US House of Representatives also approved measures to clarify digital asset restrictions.

Bitpanda co-founder and CEO Eric Demuth discusses how these ideas fit into the global adoption of cryptocurrencies: The SEC approved the ETH spot ETF after months of political opposition. Long delayed, but we’re delighted they did. While the SEC still considers Ethereum (ETH) a security, institutional investors can enter another crucial crypto market.

Another evidence of the crypto industry change. It’s another step toward treating crypto like other assets, which is right.” It means crypto will be more stable, have longer-term financial possibilities, and attract major US investors. However, even if they were rejected, it wouldn’t have changed ETH’s and crypto’s destiny.

Is Ethereum a Step Towards Mainstream Adoption?

The crypto sector was ecstatic when the US government launched Bitcoin ETFs early this year, a long-awaited major advance. This allowed US investors, large and small, to watch Bitcoin‘s moves and buy products without signing up for an unregulated exchange or digital wallet.

After Ethereum ETFs were approved, we wanted to know if cryptocurrencies are now a mainstream investment or still a specialized and dangerous one.

About the SEC’s first stage clearance, Coincover’s head of partnerships Alex Saleh remarked, “This is a welcome surprise given the challenges of the Bitcoin ETF approvals and the SEC’s history of hostility toward crypto.” These funds are traded largely in the US, their largest market.

The introduction of Ethereum ETFs needs a second permission. If approved, it would demonstrate faith in digital assets’ role in our financial system and allow more of these goods.

Ethereum ETFs Live

Since March 2025, Spot Ethereum ETFs have seen a lot of U.S. activity. The SEC approved five Spot Ethereum ETFs in July 2024. Soon after, trading began.

ETF approval takes a lot of time. In October 2023, the SEC approved Ethereum Futures ETFs. Ethereum futures contracts, rather than coin prices, guide these funds. Spot Ethereum ETFs, which track the current price of Ethereum, were approved after extensive regulatory investigation and industry input. These investments were listed and traded on regulated markets after SEC approval in mid-2024. 

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Buyers can now directly track the Ethereum market using Spot Ethereum ETFs. This has increased cryptocurrency investment interest. BlackRock and Fidelity are two major financial firms with Spot Ethereum ETFs. These companies are showing increased interest in crypto.

U.S. buyers can acquire Spot Ethereum ETFs from mid-2024 after the SEC’s prolonged approval process. Bitcoin investments have changed since then, and these ETFs are crucial. 

Ethereum’s Hidden Losses Unveiled

ETH’s realized price is the average of recently traded ETH. The average cost basis of all stock in circulation. The current dip below the realized price reveals that many ETH holders lost money they didn’t know they had.

The network’s ETH holders lost 7% as the market value to actual value (MVRV) dropped to 0.93. Remember that the price is the weighted average of all past deals. This includes the cost base of all ETH holders, not just those from 2023 to 2025.

On March 12, Ethereum’s TVL dropped to $45.6 billion, a six-month low. It was 41% lower than its record $77 billion on Dec. 17, 2024.

The overall Ethereum fees plummeted to $46.28 million, the lowest since July 2020, indicating that people aren’t as interested in the network.

Ether is Attractive at $1.6K–$1.9K

Glassnode posted on X on how Ethereum’s cost-basis distribution could assist in determining support levels. After Ether’s plunge below $1,880, 600,000–700,000 ETH piled up around $1,900 a week later. The post states,

“This means that $1.9K could become a support if $ETH stays where it is now.” Above point, $2.2K (465K $ETH) may be resistance. The supply difference between $1.9K and $2.2K is tiny, therefore prices can quickly approach resistance.

An unnamed analyst, Ninja, believes Ethereum will always settle between $1,600 and $1,900. He or she labelled the range above “attractive region for commercial money” and set a high swing target at $2,500.

Who’s Next?

Since the Ether ETF was approved on May 23, various cryptocurrency ETFs have been discussed. Some financial experts say this approval potentially enables coin spot ETFs. This could lead to spot ETFs for popular cryptocurrencies like Ripple XRP and Solana. Their crypto market capitalization is $74.6 billion and $27.3 billion, respectively, making them stable.

Multiple cryptocurrency ETFs would disrupt the market and make institutional diversification difficult. The possibility is still high. Not everyone believes the Ether ETF will lead to more cryptocurrency ETFs. It’s unlikely they’ll “open the door for everyone else” to launch funds. A patient ETF investor would wait until 2025. 

Final Verdict

The crypto sector reached a milestone with spot Ethereum ETFs, after Bitcoin ETFs. It indicates institutional adoption, but Ethereum’s security status and regulatory landscape remain unclear. Ethereum’s price fluctuation, decreased TVL, and lower network activity indicate uncertainty despite initial euphoria.

Analysts see a buying opportunity between $1,600 and $1,900, with a possible upside of $2,500. The market may be reshaped by more cryptocurrency ETFs like Ripple XRP and Solana, but experts warn against assuming an open-door approach for all digital assets.

Investors should be cautious while the financial system adjusts to crypto. Ethereum ETFs and future regulatory changes will determine whether digital assets become mainstream finance or a high-risk alternative investment.